Last checked at 22 Jan 2019 07:00
22 January 2019
Midwich Group Plc
("Midwich" or "the Group")
Year end Trading Update
Midwich, a specialist audio visual distributor to the trade market, is today providing a trading update for the year ended 31 December 2018.
The Group's trading momentum continued in the second half of the year, with encouraging growth seen across all of the Group's divisions. Additionally, all of the acquisitions made in 2017 performed either in line with or ahead of the Board's expectations and continue to benefit from being part of the Group.
Consequently, the Board now expects to report revenue for 2018 in excess of £570 million, representing growth of approximately 20 per cent over the prior year (20 per cent at constant currency). The Group has delivered revenue growth whilst continuing to improve gross margins in line with the Board's expectations. Cash generation was also strong and the cash conversion rate for the year was ahead of the prior year.
As a result of this strong performance, the Board now anticipates reporting adjusted profit before tax for 2018 to be slightly ahead of its previous expectations.
Stephen Fenby, the Group Managing Director, commented:
"2018 was another year of good growth for Midwich, with strong organic performances from the Group's existing businesses and significant full year contributions from the acquisitions made in 2017. In addition, we have been pleased with the integration of the three businesses acquired during 2018 which are all trading in line with or ahead of management's expectations and, given their timing, have only had a small impact on the 2018 results. Post the year end, we acquired MobilePro AG, a leading AV distributor based in Zurich, Switzerland. This new territory further expands the Group's geographical reach.
"Through 2019, management will continue to explore cross-selling opportunities in the current portfolio while also evaluating the healthy pipeline of potential acquisitions both in the Group's existing markets and in new territories."
Midwich will announce its final results for the year ended 31 December 2018 on 12 March 2019.
Enquiries:
Midwich Group plc Stephen Fenby, Managing Director Stephen Lamb, Finance Director
| Tel: +44 (0) 1379 649 200 |
Investec Bank plc James Rudd Carlton Nelson
| Tel: +44 (0) 20 7597 5970 |
FTI Consulting Alex Beagley Tom Hufton Fern Duncan
| Tel: +44 (0) 20 3727 1000
|
Note to editors
Midwich is a specialist AV distributor to the trade market, with operations in the UK and Ireland, Continental Europe and Asia-Pacific. The Group's long-standing relationships with over 400 vendors, including blue-chip organisations, support a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and professional audio. The Group operates as the sole or largest in-country distributor for a number of its vendors in their respective product sets.
The Directors attribute this position to the Group's technical expertise, extensive product knowledge and strong customer service offering built up over a number of years. The Group has a large and diverse base of approximately 14,000 customers, most of which are professional AV integrators and IT resellers serving sectors such as corporate, education, retail, residential and hospitality. Although the Group does not sell directly to end users, it believes that the majority of its products are used by commercial and educational establishments rather than consumers.
Initially a UK only distributor, the Group now has over 800 employees across the UK and Ireland, Continental Europe and Asia-Pacific. A core component of the Group's growth strategy is further expansion of its international operations and footprint into strategically targeted jurisdictions.
For further information, please visit www.midwichgroupplc.com